Starbucks

Résumé du document

The purpose of this memo is to study Starbucks' strategy. Firstly, the business is analyzed to understand what kind of company Starbucks is, then the PESTEL analysis is implemented to figure out the environment of the market. After establishing a general overview of the internal and external aspects, the mission statement of the company will be realized with the vision and objectives. Subsequently, the competition model will be established to know the competitive advantages of the company towards its competitors. Finally, the full-fledged analysis will lead to the strategy of Starbucks with its positioning on the strategy clock.

Extraits

[...] These financial incentives help to pay the costs incurred by participating suppliers. Suppliers wishing to participate are required to provide independent, third party verification of their performance against the guidelines. Their strategy is exclusivity: convince coffee bean suppliers to only sell coffee beans to them, in this way they've also made 95% of the coffee cups only compatible with their coffee. For the inside of their stores and the whole design of the furniture, the vendors are kept secret. However, a lot of suppliers are available on the market; there is no supplier concentration especially for fair trade coffee. [...]

[...] Sustainable development also is a current problem. Legal Changes in environmental laws and regulations: Organic, Fair trade, genetically modified food has to be marked by labels. All fiscal (taxes, minimum wage) aspects in the countries where the company is implanted. Working time directives (especially in Europe) Provision and use of work equipment regulations. Auditing environmental factors lead to the conclusion that Starbucks evolves in a dynamic environment. Consequently the company needs to concentrate on future environment to stay in the race and keep its leader position STARBUCKS COMPETITION MODEL Five forces analysis of Porter The threat of substitute products: Buyer propensity to substitute is low because coffee is a very frequent consumer good. [...]

[...] There is no barrier of entry because flavoured coffee recipes cannot be protected by any kinds of patent or rights. The capital requirement for starting a coffee house is not really high in comparison to other businesses; the main cost at the beginning is the rent. The access to distribution is quite easy because coffee houses distribute their products themselves; there is no need to go through complex distribution channels. Furthermore the learning curve is quick in this branch: "expertise" in coffee making is not long to acquire. [...]

[...] Starbucks wants to maintain an excellent growth and stay focused on their basis values. The company is based on the following statements: Offer customized high quality coffee Give to the customer an interesting variety of products Provide a relaxing, attractive social atmosphere Create, keep and always improve the relationship with the customer Create a great working environment Create a strong relationship with their suppliers Implicate themselves in the communities around Be a social corporation responsible Provide a superior rate of return to the investors Do everything in the respect of everyone VISION Starbucks wants to be the reference between all the coffeehouses. [...]

[...] In the consumption society, the snacks market has significantly increased. That can be explained on the one hand by the fact that people eat more and more non-vital, non-necessary food, and research always more flavours and new taste experiences. And on the other hand snacks consumption also increased because of the lack of time of people nowadays. However even though it is kind of paradoxal, people are more and more concerned about there health and tend to largely take into account the amount of fat that their food contains. [...]